Homeownership is a key wealth-building tool, but homeownership rates for households of color continue to lag those of white households. In fact, the homeownership gap between Black and white households has persisted since the Fair Housing Act was passed in 1968. Black households, Hispanic households, and other households of color, except Asian households, also have lower average home values than white households, suggesting that even when they achieve homeownership, these groups may accumulate less housing wealth.

To better understand these homeownership and home value disparities, our new report looks at how the nation’s estimated $23.6 trillion in primary-residence housing wealth breaks down by race and ethnicity and what these gaps mean for households of color more broadly.

We find that these inequities in homeownership outcomes mean that households of color own a smaller proportion of primary-residence housing wealth relative to their population share. Although there were twice as many white households as households of color in 2019, white households held nearly three times the primary-residence housing wealth that households of color held. In fact, households of color represent a third (41 million) of the 123 million households in the US, but they own only a quarter ($6.7 trillion) of the nation’s $26 trillion in total primary-residence housing wealth.

These disparities in housing wealth mean that many households of color are more financially vulnerable than white households, even when they do achieve homeownership. To ensure that all Americans have the same opportunities to build wealth through homeownership, policies must address the barriers—including the history of systemic racial and ethnic discrimination—that limit the ability of households of color to achieve homeownership and build housing wealth.

Read the full article about housing wealth by Michael Neal and Caitlin Young at Urban Institute.